Iberian Minerals Reports Q3 Net Loss of $33.24 Million

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2012) - Iberian Minerals Corp. (TSX VENTURE:IZN) today announced financial and operating results for the three and nine month periods ended September 30, 2012, with comparative figures for the three and nine month periods ended September 30, 2011. The condensed interim consolidated financial statements and related notes, and Management Discussion and Analysis may be found on www.sedar.com. Unless stated otherwise, all reported figures are in U.S. dollars. The Company reported net loss of $33.24 million for Q3 2012, representing a loss of $0.07 per share.

Financial highlights:

Three months ended September 30, 2012

Recorded net loss of $33.24 million or $(0.07) per registered share which included:

Sales of $115.85 million and gain after cost and expenses of mining operations of $16.26 million;

A realized gain of $2.67 million on commodity hedges (included in sales) which contributed to the gross gain;

An unrealized non-cash loss of $41.92 million on derivative financial instruments outstanding, principally as a result of commodity hedging positions in copper and silver.

Cash flow provided by operations before changes in working capital items was $28.47 million.

Nine months ended September 30, 2012

Recorded net loss of $20.07 million or $(0.04) per registered share which included:

Sales of $326.63 million and gain after cost and expenses of mining operations of $54.13 million;

A realized loss of $8.76 million on commodity hedges (included in sales) which partly net off the gross gain;

An unrealized non-cash loss of $28.21 million on derivative financial instruments outstanding, principally as a result of commodity hedging positions in copper and silver.

Cash flow provided by operations before changes in working capital items was $94.51 million.

The Cash Operating Cost (non-IFRS measure - refer to section 6) was $1.52 per payable pound of copper (2011 - $1.56 per payable pound of copper). Reduction in Cash Operating cost in 2012 was due to a reduction in direct cost (US$23,68 million in 2012 versus US$25,78 in 2011), with similar copper production levels but significantly net off by lower by-credits of lead, Zinc and silver (US$9,99 million in 2012 versus US$11,69 in 2011).

The Cash Operating Cost was $1.28 per payable pound of copper (2011 - $1.67 per payable pound of copper). Year-to-date Cash Operating cost was substantially reduced in 2012. Driver for the reduction is a reduction on direct cost (US$69,83 million in 2012 versus US$76,94 in 2011) with higher copper production levels.

During the nine months ended September 30, 2012, the Company terminated an agreement with Cadillac Venture Inc. which extinguishes their 90% interest on 14 of MATSA's properties located in the Iberian Pyrite Belt of southern Spain. The consideration for the transaction was CAD$2.50 million. The transaction was accepted by TSX Venture Exchange. As of September 30, 2012, the transaction was paid.

Copper concentrate production in 2012 was 21,733 DMT versus 24,551 DMT in 2011 (decrease of 2,818 DMT or 11.47%).

Contained copper production in 2012 was 5,061 FMT versus 5,688 FMT tonnes in the prior year (decrease of 627 FMT or 11.02%).

The Cash Operating Cost in 2012 was $2.14 per payable pound of copper versus prior year of $1,19. Higher Cash Operating Cost in 2012 are driven by (i) an increase in operating cost mainly due to FX rate of Nuevos Soles versus USD and higher wages cost and (ii) the impact of lower head grade levels (from 1.05% in 2011 to 0.89% in 2012).

Copper concentrate production in 2012 was 67,399 DMT versus 72,428 DMT in 2011 (decrease of 5,029 DMT or 6.4%).

Contained copper production in 2012 was 15,586 FMT versus 17,387 FMT in the prior year (decrease of 1,801 FMT or 10.36%).

The Cash Operating Cost in 2012 was $1.89 per payable pound of copper versus prior year of $1.12, driven by decrease in head grades of copper in 2012 (from 0.93% in 2011 to 1.09% in 2012).

Summarized Financial Results

The following table presents a summarized Statement of Operations for the three and nine months ended September 30, 2012 with comparatives for the three and nine months ended September 30, 2011.

Three months ended September 30,

Nine months ended September 30,

(thousands of U.S. Dollars)

2012

2011

2012

2011

$

$

$

$

Gross sales

113.177

112.533

335.395

354.509

Realized gains on derivative financial instruments held for trading

2.673

(52.423

)

(8.763

)

(171.027

)

Sales

115.850

60.110

326.632

183.482

Costs and expenses of mining operations

99.589

84.196

272.501

237.499

Gross gain / (loss)

16.261

(24.086

)

54.131

(54.017

)

Expenses

Administrative expenses and other

2.383

1.876

8.012

4.947

Exploration and evaluation expenditures

10.055

4.816

26.973

4.816

Foreign exchange (gain) loss

737

(4.770

)

2.122

(1.607

)

Unrealized gain on derivative instruments

41.919

(164.216

)

28.213

(292.656

)

Total expenses (other income)

55.094

(162.294

)

65.320

(284.500

)

Operating income

(38.833

)

138.208

(11.189

)

230.483

Net finance costs

2.607

(4.490

)

4.447

3.783

Income before taxation

(41.440

)

142.698

(15.636

)

226.700

Current income tax expense

3.337

(931

)

7.067

150

Future income tax expense

(11.536

)

20.042

(2.635

)

25.003

Net income

(33.241

)

123.587

(20.068

)

201.547

Basic earnings per share ($)

(0,07

)

0,27

(0,04

)

0,51

Diluted earnings per share ($)

(0,06

)

0,26

(0,04

)

0,49

Key operating statistics

CMC:

CMC operating statistics

Periods ended

Three months

Nine months

September 30,

Unit

2012

2011

2012

2011

Ore mined

t

629.048

608.008

1.903.030

1.787.493

Ore processed

t

627.929

597.139

1.854.031

1.769.167

Copper ore grade

%

0,89

1,05

0,93

1,09

Concentrate grade

%

23

23

23

24

Copper recovery rate

%

90

91

90

90

Copper concentrate

DMT

21.733

24.551

67.399

72.428

Copper contained in concentrate

FMT

5.061

5.688

15.586

17.387

Gold contained in concentrate

oz

3.104

3.543

9.305

10.574

Silver contained in concentrate

oz

74.191

79.404

220.373

240.667

Payable copper contained in concentrate

FMT

4.819

5.424

14.848

16.588

Payable gold contained in concentrate

oz

2.788

3.207

8.380

9.574

Payable silver contained in concentrate

oz

66.408

71.213

197.532

215.625

Cash Operating Cost per lb of payable copper

USD

$

2,14

$

1,19

$

1,89

$

1,12

MATSA:

MATSA operating statistics

Periods ended

Three months

Nine months

September 30,

Unit

2012

2011

2012

2011

Copper ore

Ore mined

t

287.155

257.205

839.624

878.166

Ore processed

t

283.965

274.240

838.959

867.343

Copper ore grade

%

1,89

2,20

2,00

2,20

Concentrate grade

%

23

23

23

22

Copper recovery rate

%

85

86

86

86

Copper concentrate

DMT

20.074

22.601

62.371

72.859

Copper contained in concentrate

FMT

4.547

5.184

14.256

16.336

Silver contained in concentrate

oz

60.758

61.993

239.504

220.676

Payable copper contained in concentrate

FMT

4.346

4.958

13.633

15.608

Payable silver contained in concentrate

oz

41.396

40.193

179.346

163.966

Polymetallic ore

Ore mined

t

275.719

230.785

799.426

645.342

Ore processed

t

243.465

244.442

768.001

631.866

Zinc ore grade

%

3,90

5,39

4,34

5,71

Zinc concentrate grade

%

45

47

47

48

Zinc recovery rate

%

57

66

68

68

Copper ore grade

%

1,19

1,17

1,18

1,10

Copper concentrate grade

%

23

24

24

23

Copper recovery rate

%

69

51

69

38

Lead ore grade

%

0,98

1,55

1,24

2

Lead concentrate grade

%

18

18

23

18

Lead recovery rate

%

16

33

34

39

Zinc concentrate

DMT

11.885

18.260

46.916

50.893

Copper concentrate

DMT

8.615

6.106

23.514

11.205

Lead concentrate

DMT

2.162

7.280

13.483

23.525

Zinc contained in concentrate

FMT

5.338

8.632

21.936

24.390

Copper contained in concentrate

FMT

1.994

1.454

5.573

2.580

Lead contained in concentrate

FMT

379

1.217

3.240

4.216

Silver contained in concentrate

oz

116.882

173.556

467.581

504.425

Payable zinc contained in concentrate

FMT

4.387

7.171

18.182

20.321

Payable copper contained in concentrate

FMT

1.908

1.393

5.338

2.468

Payable lead contained in concentrate

FMT

314

999

2.836

3.510

Payable silver contained in concentrate

oz

70.128

97.776

281.620

303.121

Cash Operating Cost per lb of payable copper

USD

1,52

1,56

1,28

1,67

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian listed global base metals company with interests in Spain and Peru. The Condestable Mine, located in Peru approximately 90 km south of Lima operates at 2.4 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia region of Spain approximately 110 km north-west of Seville and operates a 2.2 million tonnes per year underground mine and concentrator that produces copper, zinc and lead concentrates that also contain gold and silver.

Note 1 - The Cash Operating Cost per pound of payable copper is a non-IFRS performance measure. It includes cash operating costs, including treatment and refining charges ("TC/RC"), freight and distribution costs, and is net of by-product metal credits (zinc, gold and silver). The Cash Operating Cost per pound of payable copper indicator is consistent with the widely accepted industry standard established by Brook Hunt and is also known as the C1 cash cost.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward- looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the section entitled "Risk Factors" in the Corporation's annual information form dated March 29, 2010. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.